A Labour council which ran a pilot licensing scheme at £500 a licence has now proposed the permanent licence cost should soar to £925.
Hackney council in London is currently consulting on plans to introduce two new five-year licensing schemes in the private rented sector (PRS) from early 2026, arguing that they will improve standards.
These include a borough-wide Additional HMO Licensing Scheme (applying to all HMOs that do not require a mandatory HMO licence) and a Selective Licensing Scheme (covering all privately rented homes, excluding HMOs) in 17 of Hackney’s 21 wards.
Hackney proposes a £925 fee per property – significantly higher than its previous £500 pilot scheme, and well above neighbouring boroughs such as Brent, Lewisham, and Haringey.
The council has provoked a furious row with lettings agent trade body Propertymark, which has made an unusually outspoken attack on the licensing proposals.
Propertymark wants Hackney to scrap this borough-wide approach and instead wait just a few months until the national PRS database takes effect when the Renters Rights Bill becomes law in a matter of weeks from now.
“We believe Hackney’s broad-brush approach, which is similar to schemes in place across many local authorities, risks duplicating this national system. More targeted schemes would be better value for money and more effective in tackling serious hazards and anti-social behaviour. Data in Hackney’s consultation shows that serious hazards, complaints, and anti-social behaviour are concentrated in certain wards” says the agents’ body.
It continues: “Since landlord licensing was first introduced in 2006, we have regularly responded to consultations objecting to the introduction of new schemes because we strongly disagree that licensing is the best method to improve housing stock within the Private Rental Sector (PRS).
“Instead, we advocate a regulatory framework that focuses on education, proportionate enforcement, and effective targeting of problem areas.
“We have lobbied for councils to adopt a collaborative approach, building better relationships with letting agents, landlords, professional bodies and public services to tackle housing issues.
“By providing access to information, education, and support, local authorities could more effectively gain buy-in from stakeholders and raise standards over the long term. Furthermore, recognising and rewarding landlords and letting agents who adhere to good practice will enable local authorities to target their resources on effective intelligence-led enforcement.”
Propertymasrk adds: “High fees will inevitably be passed on to tenants through rent increases. Additionally, the burden of licensing fees, at a time when landlords are impacted by ongoing mortgage costs and the cost-of-living crisis, will affect the ability to improve standards. Our research also shows that rising costs, including licensing, can push smaller landlords out of the PRS. Fewer available properties will inevitably mean tenants face reduced choice and higher rents.
“Propertymark has advised Hackney Council to lower fees in line with comparable boroughs, offer discounts for landlords using Propertymark-member agents (as has been done successfully in Liverpool and Merton), and extend discounts to properties managed to high energy efficiency standards.”
This article is taken from Landlord Today